Macy's (M) closed at $23.39 in the latest trading session, marking a +0.09% move from the prior day. This move outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.16%.
Heading into today, shares of the department store operator had lost 5.04% over the past month, lagging the Retail-Wholesale sector's gain of 2.62% and the S&P 500's gain of 2.07% in that time.
Wall Street will be looking for positivity from M as it approaches its next earnings report date. On that day, M is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.53 billion, down 0.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.10 per share and revenue of $24.98 billion, which would represent changes of -25.84% and +0.04%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for M. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. M is currently a Zacks Rank #4 (Sell).
Looking at its valuation, M is holding a Forward P/E ratio of 7.53. For comparison, its industry has an average Forward P/E of 11.54, which means M is trading at a discount to the group.
It is also worth noting that M currently has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Regional Department Stores industry currently had an average PEG ratio of 1.18 as of yesterday's close.
The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow M in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macy's, Inc. (M) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research